13 Pennsylvania Consolidated Statutes § 2505 - Shipment By Seller Under Reservation

§ 2505. Shipment by seller under reservation.

(a) General rule.--Where the seller has identified goods to the contract by or before shipment:

(1) His procurement of a negotiable bill of lading to his own order or otherwise reserves in him a security interest in the goods. His procurement of the bill to the order of a financing agency or of the buyer indicates in addition only the expectation of the seller of transferring that interest to the person named.

(2) A nonnegotiable bill of lading to himself or his nominee reserves possession of the goods as security, but except in a case of conditional delivery (section 2507(b)) a nonnegotiable bill of lading naming the buyer as consignee reserves no security interest even though the seller retains possession or control of the bill of lading.

(b) Shipment in violation of contract.--When shipment by the seller with reservation of a security interest is in violation of the contract for sale it constitutes an improper contract for transportation within section 2504 (relating to shipment by seller) but impairs neither the rights given to the buyer by shipment and identification of the goods to the contract nor the powers of the seller as a holder of a negotiable document of title. (Apr. 16, 2008, P.L.57, No.13, eff. 60 days)

2008 Amendment. Act 13 amended subsecs. (a)(2) and (b).

Cross References. Section 2505 is referred to in sections 1201, 2509, 9102, 9109, 9110, 9309 of this title.

Section: Previous  2501  2502  2503  2504  2505  2506  2507  2508  2509  2510  2511  2512  2513  2514  Next

Last modified: October 8, 2016